W-8BEN form, i.e. a way to reduce the tax on US dividends

Only death and taxes are certain. But if the latter is a sure thing, maybe at least they can be reduced to a minimum? This option is given by the form W-8BEN. And that's not the effect Of the "New Deal" and the double taxation avoidance agreements between Poland and the USA. It is thanks to this solution that it is possible to lower the tax on dividends paid by American companies. He was the first to introduce such an option in Poland Brokerage House X-Trade Brokers.

W-8BEN available on XTB 

Coca-Cola, AT&T, McDonald's, 3M ... These are just some of the companies that make up the group of so-called Dividend Aristocrats - companies paying dividends continuously for at least 25 years! The effects of long-term use of compound interest are indisputable, therefore, for all those who invest in dividends, XTB has introduced a solution that will optimize tax-related costs. 

The W-8BEN form allows Polish non-US tax residents to benefit from a lower (15% instead of 30%) tax rate on dividends and dividend equivalents paid by US companies. It is intended for all individual clients, and its completion is obligatory and, in principle, should take place before buying real shares or opening a CFD position on US stocks or ETFs. 

How to lower your tax

The procedure is very simple and is 100% online - just fill in the form on the broker's website. There is no need to sign and send any documents in paper form.

The reduced dividend tax rate will be automatically applied from the beginning of the month following the month in which the W-8BEN was completed and found correct by XTB. Therefore, an investor wishing to account for the dividend granted in March this year at a lower tax rate should complete the W-8BEN form by the end of February 2022.